Consequences of rescission of voidable contract
Section 64 of the Indian Contract Act, 1872 deals with consequences of rescission of voidable contract. When a person at whose option a contract is voidable rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor. The Act came into force on 01 Sep 1872.
When a person at whose option a contract is voidable rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor. The party rescinding avoidable contract shall, if he have received any benefit thereunder from another party to such contract, restore such benefit, so far as may be, to the person from whom it was received.1
Section 64, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Shyam Sunder v. M.C.D. & Anr. (batch with connected Ghogha Dairy Colony petitions)
Court's Decision & Legal Precedent
Where allotments induced by fraudulent misrepresentation are rescinded as voidable contracts, s.64 requires the rescinding party to restore benefits received so far as may be (status quo ante / restitutio in integrum), subject to a reasonable set-off for damages actually suffered. Absent a contractual forfeiture clause, MCD could not retain the entire plot consideration; earnest-money/price must be refunded after permissible damage deductions.
On this section: Primary teaching use of s.64 consequences of rescission: restore benefit on avoiding a voidable contract, tempered by restitutio in integrum and set-off of proven loss — not punitive total forfeiture without a forfeiture clause.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 64
What have the courts held on Section 64 of the Indian Contract Act?
Shyam Sunder v. M.C.D. & Anr. (batch with connected Ghogha Dairy Colony petitions) (08 Apr 2008) is the leading judgment on this section among those set out below: Primary teaching use of s.64 consequences of rescission: restore benefit on avoiding a voidable contract, tempered by restitutio in integrum and set-off of proven loss — not punitive total forfeiture without a forfeiture clause.
How do I find court cases under Section 64 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 64, section 64 Contract Act, section 64 of the Indian Contract Act. People searching for it also type indian contract act section 64 and indian contract act section 64 and 65. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Shyam Sunder v. M.C.D. & Anr. (batch with connected Ghogha Dairy Colony petitions) (08 Apr 2008).
When did Section 64 of the Indian Contract Act come into force?
Section 64 of the Indian Contract Act, cited as Contract Act 64, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.